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TAX RATES & ALLOWANCES 2014/15

Here is a useful summary of key tax rates and allowances for the 2014-15 tax year:

Income Tax Rates

First £31,865 of taxable income

Next £118,135

Excess over £150,000

20%

40%

45%

The equivalent rates applicable to dividends are a 10% ordinary rate, a 32.5% dividend upper rate and a dividend additional rate of 37.5% (less a deductible 10% tax credit in each case)

Personal Allowances

Individuals born after 5 April 1948

Individuals born between 6 April 1938 and 5 April 1948

Individuals born before 6 April 1938

£10,000

£10,500*

£10,660*


Note the Personal Allowance reduces where total income is above £100,000 by £1 for every £2 of income above the £100,000 limit which applies irrespective of age. 

*These age-related allowances, frozen at their 2012-13 levels, are reduced by £1 for every £2 of income above £27,000 until the basic personal allowance of £10,000 is reached.

National Insurance Contributions

Employee Class 1

Employer Class 1

Employer Class 1A

12% (on income between £7,956pa and £41,865pa,
then 2% above)

13.8% (on income above £7,956pa ~ no ceiling)

13.8% (on employee taxable benefits)

Self-employed:

Class 4

Class 2

9% (on profits between £7,956 and £41,865, then
2% above)

£2.75 per week (small earnings exception £5,885pa)

Employment Allowance (new from 2014-15)

Per business

£2,000 offset against employer's Class 1 NIC

Car Benefits

CO2 75gms/km or less

CO2 76~94gms/km

CO2 210gms/km & over

5% of list price (8% diesels)

11% of list price (14% diesels) increasing by 1% for every additional 5gms until 210gms/km reached

35% of list price (35% diesels)

Fuel Benefits

Relevant car fuel % multiplied by £21,700

Private Use of Vans

Taxable benefit

Fuel benefit

£3,090

£581

No charge where personal use limited to home-work journeys

Tax-Free Mileage Allowance ~ Own Vehicle

Cars ~ first 10,000
business miles:

Thereafter

45p per mile

25p per mile

Corporation Tax

Small profits rate

Main rate

Marginal rate

20% (on profits up to £300,000)

21% (profits of £1.5 million and over)

21.25% (profits between £300,000 and £1.5 million)

Capital Allowances

Annual investment
allowance

Main pool

Special rate pool

Motor Cars


100% on first £500,000pa of qualifying expenditure

18% writing down allowance

8% writing down allowance

100% where CO2 emissions of 95gms/km or less
18% where CO2 between 96-130gms/km
8% where CO2 131gms/km or more

Research & Development

Capital expenditure

Revenue expenditure

Revenue expenditure

100% allowance

225% (small and medium sized companies)

130% (large companies)

Capital Gains Tax

Annual exemption

Up to basic rate limit

Above basic rate limit

Entrepreneurs' rate

Chattels exemption

First £11,000 of gains

18%

28%

10% (up to lifetime limit of £10 million gains)

£6,000 (per item)

Inheritance Tax

Nil rate band

Rate of tax on excess

Annual exemption

Marriage exemption

Small gifts limit

Business property

£325,000 per individual (frozen until 5 April 2018)

40% (20% on certain trust lifetime transfers)

£3,000 (per donor per year)

£1,000 ~ £5,000 (depending upon donor
/donee relationship

£250 (per donee per year)

100% or 50% relief

Value Added Tax

Standard Rate

Reduced Rate

Registration limit

De-registration limit

Flat rate scheme

Cash accounting scheme

Annual accounting scheme

20%

5%

£81,000 annual taxable turnover

£79,000

£150,000 turnover limit

£1,350,000 turnover limit

£1,350,000 turnover limit

Stamp Duties

Value up to £125,000

£125,001 to £250,000

£250,001 to £500,000

£500,001 to £1million

Over £1million to
£2million

Over £2million

nil (£150,000 for non-residential properties)

1%

3%

4%

5%

7% (Residential properties only)

Note a 15% rate applies to properties over £500,000 purchased by companies and certain other ‘non-natural entities’

Previous Years Rates

For a list of rates & allowances for earlier tax years visit the following link at HM Revenue & Customs website: http://www.hmrc.gov.uk/rates/index.htm

Marsh Vision App

The App can be downloaded free onto your iPhone, iPad or Android phones. It’s packed full of some really useful Tax Tables, Calculators and important dates, all of which you will be able to access for free, anywhere you have internet connection on your device.

http://www.marshvision.com/marsh-vision-app.asp